Draft Energy Prices Act 2022 (Amendment) (Northern Ireland) Regulations 2026 Debate
Full Debate: Read Full DebateAndrew Bowie
Main Page: Andrew Bowie (Conservative - West Aberdeenshire and Kincardine)Department Debates - View all Andrew Bowie's debates with the Department for Energy Security & Net Zero
(1 month, 3 weeks ago)
General CommitteesIt is an absolute pleasure to serve under your chairmanship this morning, Sir Alec. The regulations, as already mentioned, extend the period for the Northern Ireland Department for the Economy to exercise existing powers under the Energy Prices Act 2022 from 26 months to six years. In itself, that is not controversial; no new powers are created through this instrument and we do not intend to obstruct its passing today. The Minister has explained the reasoning for the extension: to empower the Northern Ireland Executive to parallel the British Government’s autumn Budget commitments.
The Minister referred to the transfer of 75% of the renewables obligation scheme costs attributable to domestic energy supply, which will instead be funded through general taxation. As a result of that transfer, from April, only 25% of the renewables obligation cost is being recovered from consumers—but moving costs from energy bills to tax bills is a sleight of hand.
Let us also not forget the recipients of this taxpayer money: those extraordinary subsidies now flowing from households are giving wind farm owners three times the market price for their electrons. The Secretary of State’s auction process has locked this country, including Northern Ireland, into paying extortionate prices for wind power for the next 20 years—an extraordinary cost—and it is taxpayers who are now footing that bill.
The Minister espouses a commitment to lowering household energy bills, as per the Government’s manifesto pledge to reduce bills by £300, yet we have seen bills go up since they took office. A month ago, the Government adopted our policy to remove one of the carbon taxes on electricity generation—the carbon price support. While the Labour Government transfer renewables subsidies on to taxation, the Conservative party has set out our cheap power plan to reduce the cost of energy and bring down bills by £200.
Before moving to my questions on that point, I want to follow up on the question asked by the hon. and learned Member for North Antrim. Why is it that, as laid out in the explanatory notes:
“Schedule 5 to the EPA sets out the time periods in which certain powers under that Act are exercisable”
and that these powers will
“cease to be exercisable after a period of 26 months during which both the First Minister and deputy First Minister in Northern Ireland held office (currently 3 April 2026)”?
I have never seen such a measure in an amendment or a Bill before the House in the nine years that I have been here. It seems a remarkable paragraph. It is very strange to time limit the measures to the time in office of those two individuals. If the Minister could explain why that is the case, I would be very grateful—it is a genuine question on my part.
If the Minister is keen to see households relieved of the burden imposed by the renewables obligation, will the Government adopt our cheap power plan and scrap the subsidy altogether? And might I ask the Minister when we will see the elusive £300 off all our bills?